"According to the report, Apple wants to use the nearly 600 million registered iTunes accounts and their associated credit card information to get a foothold and then build out from there"

Is Apple trying to pull a Google on us?

Google wants to know what you're buying to sell advertising based off of the data. Apple just wants what you're buying to be more of their hardware. It's in both of their best interests to improve the payment experience, but completely different motivations.

The same way you do when you're buying gear in the Apple store with your phone: with a credit card *account* attached to your Apple ID.

I currently have my iPhone entrenched in a Pad and Quill leather iPhone case (serious shout out to them here, it's an amazing case) where it sits with my debit card, my credit card, my license, and my transit pass. If I could ditch one of those payment cards I'd be pleased; ditching both would be even nicer. I sometimes find myself frequenting Starbucks because Passbook is a super-convenient way to pay.

I see some use for this. If it's all electronic anyway, what's the difference? The one thing that I am not interested in, however, is my account and all my purchases being tied to Apple or Google. I'd rather the middleman be left out of this.

How soon after they get the system up and running will they bring out an Apple credit card system to compete with MC VC AMEX JCB, etc? You know Apple would be glad to cut them out and absorb the CC companies fees!

How soon after they get the system up and running will they bring out an Apple credit card system to compete with MC VC AMEX JCB, etc? You know Apple would be glad to cut them out and absorb the CC companies fees!

Having recently worked at Discover Financial Services (Discover Card) I'd say not ever. Payment processing is a fairly large undertaking and a very competitive space. Not to mention until recently services that are digital only such as PayPal used to be don't directly compete with and couldn't replace MC/VC/AMEX/DISC etc.

How soon after they get the system up and running will they bring out an Apple credit card system to compete with MC VC AMEX JCB, etc? You know Apple would be glad to cut them out and absorb the CC companies fees!

Having recently worked at Discover Financial Services (Discover Card) I'd say not ever. Payment processing is a fairly large undertaking and a very competitive space. Not to mention until recently services that are digital only such as PayPal used to be don't directly compete with and couldn't replace MC/VC/AMEX/DISC etc.

They do directly compete in almost all online stores I use. I pick and choose which to use depending on which one is easier on a case by case basis.

The vast majority of current NFC equipt phones lack necessary hardware to do payments without allowing malware on the phone to steal money.

Last year one of the largest banks in Australia complaining that they want to ship an android app for payments but the security risk would be too high.

Apple does have the nexessary encryption hardware in place, especially in recent models. Bluetooth LE can do everything NFC is capable of, it's a little more expensive but we are taking about phones that cost hundreds of dollars already.

"According to the report, Apple wants to use the nearly 600 million registered iTunes accounts and their associated credit card information to get a foothold and then build out from there"

Is Apple trying to pull a Google on us?

Google wants to know what you're buying to sell advertising based off of the data. Apple just wants what you're buying to be more of their hardware. It's in both of their best interests to improve the payment experience, but completely different motivations.

(edit: fixed typo)

I bet apple also charges a transaction fee, just like Visa/MasterCard/Amex.

First, Google can already do what the picture suggests. I do mean Google, not Android specifically. Gmail lets you send money. A lot of iPhone users use Google services and have a Google account, so they can send money just as easily as an Android user. I believe Google opened up the ability to send money via Gmail to everyone a while back.

What Android has and has had since 2011 is the NFC technology to beam a payment account ID to the seller's computer. The seller then presents it, with a PIN entered on the owner's phone, hashed, to the payment service online, and authorizes the payment if they match what's on record. There are problems with this (very few merchants actually accept this... and when they do, you're so used to using your credit card, that you're not prepared to unlock your phone and open an app and hold everyone up in line.

iPhones could ostensibly have this as well, but the hardware is made to allow for as great a profit margin as possible. Apple only gave into the widescreen 'fad' in late 2012, and has yet to buy into the 'HD fad.' Who knows how long NFC, or even something software-based like slide typing (colloquially, Swyping) will take them to figure out? It's a shame so much of the tech world hinges on the slowest innovators, not the greatest. Due to market share, sure, but still, let's lead by the head, not the tail.

"According to the report, Apple wants to use the nearly 600 million registered iTunes accounts and their associated credit card information to get a foothold and then build out from there"

Is Apple trying to pull a Google on us?

Google wants to know what you're buying to sell advertising based off of the data. Apple just wants what you're buying to be more of their hardware. It's in both of their best interests to improve the payment experience, but completely different motivations.

(edit: fixed typo)

At this point anyone can do better than PayPal. So far google isn't doing so well with it.

Apple is welcome to try it, and I hope their high standards follow it. They can't afford to do another "maps" launch.

Just like the car system we need a mobile payment system that is platform agnostic. Or so trivial to use multiple systems together that it might as well be platform agnostic. Of course no one has the incentive to do so as they would simply open themselves up to competition.

If this does replace credit cards, it's going to be awfully embarrassing to get to the checkout with a trolley full of groceries and find your phone is flat.

I use Google wallet + NFC all the time, all of my local grocery stores support it. The biggest issue I have run into is that you need data. Its normally not a problem, but I once had to connect to the store's WiFi because cell data coverage can be spotty in large stores. The other issue, which is actually slightly more annoying, is that if you're not quick on the draw you usually end up with a store employee running up to "teach" you how to do it. I'm sure that's helpful for some people.

The vast majority of current NFC equipt phones lack necessary hardware to do payments without allowing malware on the phone to steal money.

Last year one of the largest banks in Australia complaining that they want to ship an android app for payments but the security risk would be too high.

Apple does have the nexessary encryption hardware in place, especially in recent models. Bluetooth LE can do everything NFC is capable of, it's a little more expensive but we are taking about phones that cost hundreds of dollars already.

First, Google can already do what the picture suggests. I do mean Google, not Android specifically. Gmail lets you send money. A lot of iPhone users use Google services and have a Google account, so they can send money just as easily as an Android user. I believe Google opened up the ability to send money via Gmail to everyone a while back.

What Android has and has had since 2011 is the NFC technology to beam a payment account ID to the seller's computer. The seller then presents it, with a PIN entered on the owner's phone, hashed, to the payment service online, and authorizes the payment if they match what's on record. There are problems with this (very few merchants actually accept this... and when they do, you're so used to using your credit card, that you're not prepared to unlock your phone and open an app and hold everyone up in line.

iPhones could ostensibly have this as well, but the hardware is made to allow for as great a profit margin as possible. Apple only gave into the widescreen 'fad' in late 2012, and has yet to buy into the 'HD fad.' Who knows how long NFC, or even something software-based like slide typing (colloquially, Swyping) will take them to figure out? It's a shame so much of the tech world hinges on the slowest innovators, not the greatest. Due to market share, sure, but still, let's lead by the head, not the tail.

Funny thing about NFC. You show an iPhone owner NFC in action, and they want it.

I assure you when Apple goes NFC, the fanbois will make some remark like "Apple does NFC right.»

I've noticed the Clipper cards used in the bay area are semi-compatible with NFC. That is, your phone recognizes the card. If would be nice to pay BART or Muni by slapping your phone on the reader.

First, Google can already do what the picture suggests. I do mean Google, not Android specifically. Gmail lets you send money. A lot of iPhone users use Google services and have a Google account, so they can send money just as easily as an Android user. I believe Google opened up the ability to send money via Gmail to everyone a while back.

What Android has and has had since 2011 is the NFC technology to beam a payment account ID to the seller's computer. The seller then presents it, with a PIN entered on the owner's phone, hashed, to the payment service online, and authorizes the payment if they match what's on record. There are problems with this (very few merchants actually accept this... and when they do, you're so used to using your credit card, that you're not prepared to unlock your phone and open an app and hold everyone up in line.

I imagine something like this in store, and when one gets to the checkout, bagging, and payment.

Edit: We're not there yet but that may be the future. Also since a phone can have both iBeacon and NFC both could work together based on their strengths.

Of course they do. So does Google, so does Microsoft, so does your service provider, so does your bank etc.

Every executive messes their pants at the idea of being the one to crack the 'digital wallet' and become the way you abandon cash. For good reason, they all see millions, billions of little transaction fee's adding up to huge revenues!

Problem is that consumers don't really care for another middle man between them taking money. VISA/AMEX/MC have been playing this game for decades and will fight it to the death. Retailers are already squeezed and are interested in the complexity of dealing with someone else.

Digital wallets are like the connected home. They've been just around the corner for about 2 decades.

I carry around a spare external battery, just like I used to with my Blackberry, which had a swappable battery. I find an external to be much more flexible (and the one I have stores much more than an internal battery does).

EDIT: I'm not trying to give a "you're doing it wrong" response. I get that not everyone likes the same tradeoffs. Just showing that some people prefer external batteries, rather than swapping an internal battery.

Of course they do. So does Google, so does Microsoft, so does your service provider, so does your bank etc.

Every executive messes their pants at the idea of being the one to crack the 'digital wallet' and become the way you abandon cash. For good reason, they all see millions, billions of little transaction fee's adding up to huge revenues!

Problem is that consumers don't really care for another middle man between them taking money. VISA/AMEX/MC have been playing this game for decades and will fight it to the death. Retailers are already squeezed and are interested in the complexity of dealing with someone else.

Digital wallets are like the connected home. They've been just around the corner for about 2 decades.

But remember this... the credit card companies aren't just middle men, they are also lenders (or at least the banks that control them are lenders). Apple is unlikely to get in the business of loaning consumers money. There's room for things to shift around in all of that, as long as it's still a bank who is ultimately lending you money at ungodly rates.

I imagine, though, that Apple doesn't really want to get in the business of being Visa. They want to be in the business of scraping a portion of Visa's fee stream, without having to build out everything that is Visa (insert MC/AMEX/etc in place of Visa).